McDonald's reports $2.49 billion net income for Q3 2026

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For the quarterly period ended June September 30, 2026

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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ (Number of shares of common stock outstanding as of June September 30, 2026 )

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Financial statements 195 changes

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Cash and equivalents $ 822 $ 774

In millions, except per share data June September 30,

Cash and equivalents $ 1,193 $ 774

Accounts and notes receivable 2,485 2,483 2,466

Inventories, at cost, not in excess of market 58 59 61

Prepaid expenses and other current assets 980 988 863

Total current assets 4,345 4,723 4,163

Investments in affiliates 2,896 2,985 2,820

Goodwill 3,347 3,348 3,354

Miscellaneous 6,393 6,356 6,331

Total other assets 12,637 12,689 12,505

Lease right-of-use asset, net 14,459 14,442 14,606

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Total assets $ 59,920 $ 59,515

Property and equipment, at cost 49,943 50,457 49,290

Accumulated depreciation and amortization ( 21,464 21,654 ) ( 21,049 )

Net property and equipment 28,479 28,803 28,241

Total assets $ 60,657 $ 59,515

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Lease liability 690 694

Income taxes 327 250

Accrued interest 428 533

Accounts payable $ 1,114 1,084 $ 1,149

Lease liability 686 694

Accrued interest 452 533

Accrued payroll and other liabilities 1,198 1,298 1,488

Total current liabilities 4,018 3,828 4,361

Long-term debt 39,863 39,820 39,973

Long-term lease liability 14,039 14,029 14,147

Long-term income taxes 176 350 139

Deferred revenues - initial franchise fees 946 953 945

Other long-term liabilities 677 666 704

Deferred income taxes 1,222 1,353 1,038

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Retained earnings 71,987 70,282

Additional paid-in capital 9,841 9,897 9,641

Retained earnings 73,159 70,282

Accumulated other comprehensive income (loss) ( 2,340 2,373 ) ( 2,414 )

Common stock in treasury, at cost; 953.0 954.9 and 950.0 million shares ( 80,527 81,043 ) ( 79,316 )

Total shareholders' equity (deficit) ( 1,023 343 ) ( 1,791 )

Total liabilities and shareholders' equity (deficit) $ 59,920 60,657 $ 59,515

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Quarters Ended Six Nine Months Ended

September 30, September 30,

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Revenues from franchised restaurants $ 4,393 $ 4,213 $ 8,399 $ 7,874

Other revenues 182 172 375 334

Total revenues 7,099 6,843 13,616 12,799

Revenues from franchised restaurants $ 4,487 $ 4,363 $ 12,887 $ 12,238

Sales by Company-owned and operated restaurants 2,525 2,458 4,842 4,590 2,480 2,563 7,322 7,154

Other revenues 189 151 565 485

Total revenues 7,157 7,078 20,773 19,876

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Franchised restaurants-occupancy expenses 680 654 1,356 1,274

Other restaurant expenses 163 149 329 289

Franchised restaurants-occupancy expenses 687 666 2,042 1,940

Company-owned and operated restaurant expenses 2,138 2,078 4,170 3,937 2,088 2,172 6,258 6,109

Other restaurant expenses 167 135 496 424

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Depreciation and amortization 111 106 222 213

Other 706 595 1,354 1,170

Total operating costs and expenses 3,760 3,611 7,324 6,918

Operating income 3,338 3,232 6,292 5,880

Interest expense 409 390 809 766

Nonoperating (income) expense, net ( 6 ) ( 18 ) 5 ( 76 )

Income before provision for income taxes 2,936 2,861 5,478 5,190

Provision for income taxes 574 608 1,133 1,069

Net income $ 2,362 $ 2,253 $ 4,345 $ 4,121

Earnings per common share-basic $ 3.33 $ 3.15 $ 6.12 $ 5.77

Earnings per common share-diluted $ 3.32 $ 3.14 $ 6.10 $ 5.74

Weighted-average shares outstanding-basic 709.1 714.5 709.9 714.7

Weighted-average shares outstanding-diluted 711.1 717.6 712.3 717.9

Depreciation and amortization 118 121 340 333

Other 641 664 1,995 1,834

Other operating (income) expense, net ( 139 ) ( 37 ) 29 ( 106 245 ) 36 ( 1 )

Total operating costs and expenses 3,561 3,721 10,885 10,639

Operating income 3,595 3,357 9,887 9,237

Interest expense 408 406 1,217 1,172

Nonoperating (income) expense, net ( 1 ) 1 4 ( 75 )

Income before provision for income taxes 3,188 2,949 8,666 8,140

Provision for income taxes 702 671 1,835 1,740

Net income $ 2,486 $ 2,278 $ 6,831 $ 6,399

Earnings per common share-basic $ 3.52 $ 3.20 $ 9.64 $ 8.96

Earnings per common share-diluted $ 3.51 $ 3.18 $ 9.61 $ 8.92

Dividends declared per common share $ 1.86 $ 1.77 $ 3.72 5.58 $ 3.54 5.31

Weighted-average shares outstanding-basic 706.6 712.9 708.8 714.1

Weighted-average shares outstanding-diluted 708.3 715.9 711.0 717.2

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and 115 more changes in the filing

Notes to the financial statements 127 changes

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The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements contained in the Company's December 31, 2025 Annual Report on Form 10-K. In the opinion of management, all normal recurring adjustments necessary for a fair presentation have been included. The results for the quarter and six nine months ended June September 30, 2026 do not necessarily indicate the results that may be expected for the full year.

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Conventional franchised 22,722 22,171

Developmental licensed 9,833 9,373

Foreign affiliated 11,461 10,515

Total Franchised 44,016 42,059

Company-owned and operated 2,012 2,054

Restaurants at June September 30, 2026 2025

Conventional franchised 22,930 22,280

Developmental licensed 9,952 9,459

Foreign affiliated 11,748 10,807

Total Franchised 44,630 42,546

Company-owned and operated 1,924 2,053

Total Systemwide restaurants 46,028 44,113 46,554 44,599

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Diluted earnings per common share is calculated as net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation, calculated using the treasury stock method, of 2.0 1.7 million shares and 3.1 3.0 million shares for the quarters ended June September 30, 2026 and 2025, respectively, and 2.4 2.2 million shares and 3.2 3.1 million shares for the six nine months ended June September 30, 2026 and 2025, respectively. Share-based compensation awards that would have been antidilutive, and therefore were not included in the calculation of diluted weighted-average shares, totaled 3.6 4.4 million shares and 1.9 1.8 million shares for the quarters ended June September 30, 2026 and 2025, respectively, and 3.2 3.5 million shares and 2.0 1.8 million shares for the six nine months ended June September 30, 2026 and 2025, respectively.

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In January 2023, the Company announced an evolution of its successful Accelerating the Arches strategy. Enhancements to the strategy included the addition of Restaurant Development to the Company's growth pillars and an internal effort to modernize ways of working, Accelerating the Organization , both of which are is an initiative aimed at elevating the Company's performance Accelerating the Organization and is designed to unlock further growth as modernize ways of working across the Company, focuses on becoming helping it become faster, more innovative and more efficient for its customers and people.

The Company incurred $ 98 154 million and $ 109 152 million of restructuring charges related to Accelerating the Organization in the six nine months ended June September 30, 2026 and 2025, respectively. These restructuring charges were recorded in the Other operating (income) expense, net line within the Condensed Consolidated Statement of Income. There were no significant non-cash impairment charges included in the amounts listed in the table below.

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Restructuring costs incurred — — 56 56

Cash payments ( 2 ) — ( 45 ) ( 47 )

Other non-cash items — — — —

Accrued Balance at September 30, 2026 $ 31 $ 3 $ 19 $ 53

Of the $ 98 154 million of restructuring charges incurred in the six nine months ended June September 30, 2026, $ 97 152 million was recorded primarily at Corporate and $ 1 2 million was recorded in the International Operated Markets.

Substantially all of the accrued restructuring balance recorded at June September 30, 2026, related to the Company's Accelerating the Organization initiative, is expected to be paid out over the next twelve months.

The Company continues to evolve its ways of working by driving efficiency and effectiveness across the organization, primarily led by its Global Business Services ("GBS") organization. Transformation efforts under Accelerating the Organization will continue to result in various restructuring charges as the strategy progresses through its anticipated completion during 2027, with $ 795 850 million of total restructuring charges incurred since the initiative commenced in 2023. The Company currently expects to incur approximately $ 250 225 million of restructuring charges in 2026, primarily related to professional services costs.

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June September 30, 2026 December 31, 2025

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Six Months Ended June 30,

Grand Foods Holding 48 % N/A $ 2,134 2,177 48 % N/A $ 2,048

McDonald's Japan Holdings Co., Ltd 35 % $ 2,161 2,252 $ 658 700 35 % $ 1,915 $ 657

As of June September 30, 2026, the aggregate carrying amount of the Company's investments in these equity method investees exceeded its proportionate share of the net assets of these equity method investees by $ 1.4 billion. This difference is not amortized. Management has concluded that there are no indicators of impairment related to these investments.

The following table summarizes the amounts recorded related to the Company's primary equity method investments during the six nine months ended June September 30, 2026 and 2025, respectively.

Nine Months Ended September 30,

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Accounts receivable $ 96 $ 166

Equity in earnings $ 98 157 $ 94 146

Accounts receivable $ 97 $ 96

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The effective income tax rate was 19.5 % and 21.3 % for the quarters ended 2026 and 2025, respectively, and 20.7 % and 20.6 % for the six months ended 2026 and 2025, respectively. The effective tax rate for the quarter ended June 30, 2026 reflected discrete income tax benefits related to restructuring initiatives.

The effective income tax rate was 22.0 % and 22.8 % for the quarters ended 2026 and 2025, respectively, and 21.2 % and 21.4 % for the nine months ended 2026 and 2025, respectively.

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At June September 30, 2026, the fair value of the Company's debt obligations was estimated at $ 38.3 36.5 billion, compared to a carrying amount of $ 39.9 39.8 billion. The fair value of debt obligations is based upon quoted market prices, classified as Level 2 within the valuation hierarchy. The carrying amount of cash and equivalents and notes receivable approximate fair value.

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In millions Balance Sheet Classification June September 30, 2026 December 31, 2025 Balance Sheet Classification June September 30, 2026 December 31, 2025

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Foreign currency Prepaid expenses and other current assets $ 58 60 $ 3 Accrued payroll and other liabilities $ ( 14 6 ) $ ( 117 )

Interest rate Prepaid expenses and other current assets — — Accrued payroll and other liabilities ( 12 8 ) —

Foreign currency Miscellaneous other assets 37 14 24 Other long-term liabilities ( 3 ) ( 12 )

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Total derivatives designated as hedging instruments $ 95 74 $ 27 $ ( 29 17 ) $ ( 145 )

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Total derivatives $ 161 $ 131 $ ( 29 ) $ ( 145 )

Equity Miscellaneous other assets 66 57 104

Total derivatives not designated as hedging instruments $ 66 57 $ 104 $ — $ —

Total derivatives $ 131 $ 131 $ ( 17 ) $ ( 145 )

The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the six nine months ended June September 30, 2026 and 2025, respectively:

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Cash flow hedges $ 39 $ ( 205 ) $ ( 30 ) $ 7

Foreign currency Nonoperating income/expense $ 39 46 $ ( 192 165 ) $ ( 32 ) $ 7 ( 24 )

Interest rate Interest expense — ( 13 10 ) 2 — 1

Cash flow hedges $ 46 $ ( 175 ) $ ( 30 ) $ ( 23 )

Foreign currency denominated debt Nonoperating income/expense $ 381 493 $ ( 1,660 1,562 )

Foreign currency derivatives Nonoperating income/expense 41 23 ( 273 225 )

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Interest expense $ 22 $ 31

Net investment hedges $ 422 $ ( 1,933 ) $ 22 $ 31

Undesignated derivatives $ ( 10 ) $ ( 1 )

Interest expense $ 30 $ 46

Net investment hedges $ 516 $ ( 1,787 ) $ 30 $ 46

Foreign currency Nonoperating income/expense $ ( 4 3 ) $ ( 6 9 )

Equity Selling, general & administrative expenses ( 6 15 ) 5 10

Undesignated derivatives $ ( 18 ) $ 1

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The Company enters into fair value hedges to reduce the exposure to changes in fair values of certain liabilities. The Company enters into fair value hedges that convert a portion of its fixed rate debt into floating rate debt by use of interest rate swaps. At June September 30, 2026, the carrying amount of fixed-rate debt that was effectively converted was an equivalent notional amount of $ 488 492 million, which included a decrease of $ 12 8 million of cumulative hedging adjustments. For the six nine months ended June September 30, 2026, the Company recognized a an $ 4 8 million gain on the fair value of interest rate swaps, and a corresponding loss on the fair value of the related hedged debt instrument to interest expense.

The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards to hedge a portion of anticipated exposures. The hedges cover up to the next 18 months for certain exposures and are denominated in various currencies. As of June September 30, 2026, the Company had derivatives outstanding with an equivalent notional amount of $ 2.4 billion that hedged a portion of forecasted foreign currency denominated cash flows.

Based on market conditions at June September 30, 2026, the $ 66 71 million in cumulative cash flow hedging gains, after tax, is not expected to have a significant effect on the Company's earnings over the next 12 months.

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The Company uses foreign currency denominated debt (third-party and intercompany) and foreign currency derivatives to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders' equity in the foreign currency translation component of Other comprehensive income ("OCI") and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of June September 30, 2026, $ 15.4 billion of the Company's third-party foreign currency denominated debt, and $ 1.3 1.2 billion of foreign currency derivatives were designated to hedge investments in certain foreign subsidiaries and affiliates.

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The Company is exposed to credit-related losses in the event of non-performance by its derivative counterparties. The Company did not have significant exposure to any individual counterparty at June September 30, 2026 and has master agreements that contain netting arrangements. For financial reporting purposes, the Company presents gross derivative balances in its financial statements and supplementary data, including for counterparties subject to netting arrangements. Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits. At June September 30, 2026, the Company was required to post $ 56 8 million of collateral due to the negative fair value of certain derivative positions.

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Quarters Ended Six Nine Months Ended

September 30, September 30,

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Rents $ 2,760 $ 2,677 $ 5,264 $ 4,990

Royalties 1,613 1,517 3,096 2,847

Initial fees 20 18 39 37

Revenues from franchised restaurants $ 4,393 $ 4,213 $ 8,399 $ 7,874

Rents $ 2,805 $ 2,762 $ 8,069 $ 7,752

Royalties 1,662 1,582 4,757 4,429

Initial fees 21 20 60 56

Revenues from franchised restaurants $ 4,487 $ 4,363 $ 12,887 $ 12,238

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• U.S. segment - the Company's largest market. The segment is 95 96 % franchised as of June September 30, 2026.

• International Operated Markets segment - comprised of markets, or countries in which the Company owns and operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, Poland, Spain and the U.K. The segment is 90 % franchised as of June September 30, 2026.

• International Developmental Licensed Markets & Corporate - comprised primarily of developmental licensee and affiliate markets in the McDonald's System, including equity method investments in China and Japan, as well as Corporate activities. The International Developmental Licensed Markets are 99 % franchised as of June September 30, 2026.

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Quarters Ended Six Nine Months Ended

September 30, September 30,

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MD&A 326 changes

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The Company franchises and owns and operates McDonald's restaurants, which serve a locally relevant menu of quality food and beverages in communities across more than 100 countries. Of the 46,028 46,554 McDonald's restaurants at June September 30, 2026, approximately 95% were franchised.

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Introduced in 2020 and refreshed in 2023, the Company's Accelerating the Arches strategy has been built on three growth pillars: Maximize our Marketing, Commit to the Core and Double Down on the 4D's (Digital, Delivery, Drive Thru and Restaurant Development). Through these growth pillars, the Company has invested in culturally relevant marketing, focused on its iconic products, expanded its digital ecosystem and delivery capabilities, enhanced its drive thru advantage and accelerated restaurant development.

Building on the foundation established by Accelerating the Arches , in June 2026, the Company introduced McDonald's > NEXT (the "NEXT Strategy"), its strategy to unlock the next era of growth and productivity. McDonald's > NEXT is how the Company will meet customers' expectations for great value, great tasting food, great hospitality, convenience and affordability by elevating taste and quality, co-creating with our fans, unlocking better customer and restaurant experiences, and redefining hospitality.

McDonald's > NEXT (the "Strategy") is the Company's long-term strategy to advance its ambition to be the first choice for more customers, more often. Through four interconnected pillars (Menu, Consumer, Restaurant and People), the Company intends to generate more demand and deliver it more efficiently to drive growth by elevating taste and quality, deepening customer relationships, improving customer and restaurant experiences and redefining hospitality.

The Strategy is intended to be an engine of growth and productivity. Elevating taste, quality and the customer experience is expected to create more first choice occasions. Creating more first-choice occasions is intended to drive guest-count growth. Guest-count growth, together with improved restaurant efficiency, is expected to strengthen restaurant economics. Stronger restaurant economics, in turn, are expected to create additional capacity to reinvest in the customer experience and future growth, reinforcing the cycle of growth and productivity. The Strategy is designed to drive durable comparable sales growth, increase market share, enhance restaurant productivity, support strong earnings growth and generate System and shareholder returns.

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As was true with the Accelerating the Arches strategy, At the heart of the NEXT Strategy are the Company's purpose, mission and values which underpin our its success.

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The NEXT Strategy continues to reflect and advance the Company's purpose, mission and values, and is comprised of four key pillars designed around one simple ambition: to be more customers' first choice.

• Menu > NEXT is focused on elevating taste and quality across its menu while continuing to strengthen the Company's position in its core categories: beef, chicken and beverages. Through menu innovation and operational excellence, the Company aims to deliver food that customers crave and create experiences that drive guest count growth.

• Consumer > NEXT is focused on creating more personal, relevant and engaging experiences that strengthen customers' connection to the McDonald's brand and encourage more visits. The Company aims to deepen customer relationships by combining the power of its brand, the influence of its fandom, the breadth of its customer insights and the scale of its digital capabilities to drive demand.

• Restaurant > NEXT is intended to improve restaurant efficiency with AI-enabled operating systems that reduce complexity and enable restaurant teams to serve customers great tasting food more effectively. The Company is focused on improving customer and restaurant experiences through technology, operational simplification, and holistic restaurant design that will improve operations, increase capacity and enhance the experience for crew and customers.

• People > NEXT makes excellence in execution for taste, quality, and hospitality the standard that restaurants are taught, measured on and coached to deliver. This includes equipping restaurant teams with improved tools, support and smarter ways of working to deliver exceptional hospitality, better serve customers, and strengthen the overall restaurant performance and resulting guest experience.

The Company believes the size, scale, agility and the power of the McDonald's brand positions it well to execute on the NEXT Strategy and create long-term value for customers, franchisees and shareholders.

The Company believes that its people, all around the world, set it apart and bring these values to life daily. The Strategy continues to reflect and advance the Company's purpose, mission and values and is comprised of four interconnected pillars.

Growth & Productivity Pillars

• Menu > NEXT is designed to elevate taste and quality through gold standard execution and disciplined menu innovation to drive stronger preference, more first choice occasions and increase baseline guest-count growth, while continuing to strengthen the Company's position in its core categories: beef, chicken and beverages. As part of the Strategy, the Company aims to gain approximately 1.5 percentage points of market share in both the chicken and beverage categories by the end of 2030, versus September 2026 share, while maintaining its leadership position in the beef category. More broadly, value remains foundational to Menu > NEXT as the Company seeks to deliver the combination of great taste, quality, convenience and affordability that customers expect.

• Consumer > NEXT is designed to capitalize on McDonald's brand fandom and further deepen individual customer relationships to generate more visits over time. The Company intends to leverage its distinctive brand assets, customer insights, loyalty ecosystem and digital capabilities to provide greater value to customers. These efforts are intended to generate more first-choice occasions, increase visit frequency and contribute to sustained guest-count-led growth over time.

• Restaurant > NEXT is designed to support growth and productivity through elevated execution, simplifying operations, modernizing restaurant design and deploying cloud-based and artificial intelligence ("AI") enabled technology, such as our new generative AI restaurant operating system, ArchIQ, at scale. These initiatives are intended to make restaurants easier to operate, improve restaurant efficiency and support restaurant crew in consistently serving great-tasting food and delivering a strong customer experience. Through these efforts, the Company expects to deliver approximately 250 basis points of gross restaurant-level efficiency gains as Restaurant > NEXT elements are fully deployed across the U.S. and International Operated Markets.

• People > NEXT is designed to equip restaurant crew to deliver an improved level of hospitality that creates a better, more consistent experience for customers. Through Make It Golden , a multi-year Systemwide commitment to elevate the customer experience through great food and great hospitality that are uniquely McDonald's, the Company intends to build capabilities that can be taught, measured and scaled across the System, and that strengthen customer preference and encourage repeat visits.

The Company intends to deploy the Strategy with discipline, pairing globally scaled solutions with local market insights. The timing and sequencing of initiatives will vary by market based on local factors including customer needs, restaurant readiness, technology prerequisites and local economics. To support implementation of the Strategy, the Company plans to provide approximately $8.5 billion in total cash partnering support through the end of 2036, including approximately $5 billion in cash partnering by the end of 2030, through a combination of rent relief and capital support. The Company believes the size, scale, agility and the power of the McDonald's brand positions it well to execute on the Strategy and create long-term value for customers, franchisees and shareholders.

The NEXT Strategy is aligned with the Company's capital allocation philosophy of (i) investing in opportunities to grow the business and drive strong returns, including capital expenditures and investments in technology and other capabilities, (ii) prioritizing its dividend and (iii) repurchasing shares with remaining free cash flow over time.

Second Third Quarter and Six Nine Months 2026 Financial Performance

Global comparable sales increased 1.3% 1.5% for the quarter and 2.5% 2.1% for the six nine months.

• U.S. comparable sales increased 0.8% decreased 0.2% for the quarter and 2.3% increased 1.4% for the six nine months. Comparable sales results for both periods the quarter declined slightly as negative comparable guest counts were largely offset by positive check growth. Comparable sales for the nine months were primarily driven by positive check growth, including favorable product mix, partly offset by negative comparable guest counts.

• International Operated Markets comparable sales increased 1.5% 1.4% for the quarter and 2.6% 2.2% for the six nine months. Most markets reflected positive comparable sales for both periods, led by Germany Australia and Australia, as well as the U.K. for the nine months, partly offset by negative comparable sales in France for both periods.

• International Developmental Licensed Markets comparable sales increased 1.9% 4.2% for the quarter and 2.6% 3.2% for the six nine months. Positive comparable sales for both periods were led by Japan, with all broader geographic regions reflecting positive comparable sales. Comparable sales results for both periods were partly offset by negative comparable sales in China.

In addition to the comparable sales results, the Company had the following financial results for the quarter and six nine months:

• Consolidated revenues increased 4% (2% 1% (1% in constant currencies) for the quarter and 6% (3% 5% (2% in constant currencies) for the six nine months.

• Systemwide sales increased 5% 4% (4% in constant currencies) for the quarter and 8% 6% (5% in constant currencies) for the six nine months.

• Consolidated operating income increased 3% (2% 7% (7% in constant currencies) for the quarter and 7% (4% (5% in constant currencies) for the six nine months. Excluding current and prior year charges detailed in the Operating Income and Operating Margin section on page 29 28 of this report, consolidated operating income increased 4% (2% 8% (8% in constant currencies) for the quarter and 7% (3% (5% in constant currencies) for the six nine months.

• Diluted earnings per share was $ 3.32 3.51 for the quarter, an increase of 6% (5% 10% (11% in constant currencies) and $ 6.10 9.61 for the six nine months, an increase of 8% (6% (3% in constant currencies). Excluding current and prior year charges detailed in the Net Income and Diluted Earnings Per Share section on page 23 22 of this report, diluted earnings per share for the quarter was $3.38, $3.57, an increase of 6% (5% 11% (11% in constant currencies) and $6.21, $9.78, an increase of 8% (6% (3% in constant currencies) for the six nine months.

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Other revenues 182 172 6

Total revenues 7,099 6,843 4

Quarters Ended June September 30, 2026 2025 Inc/(Dec)

Revenues from franchised restaurants $ 4,393 4,487 $ 4,213 4 4,363 3 %

Sales by Company-owned and operated restaurants 2,525 2,458 2,480 2,563 (3)

Other revenues 189 151 26

Total revenues 7,157 7,078 1

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Other restaurant expenses 163 149 9

Franchised restaurants-occupancy expenses 680 654 4 687 666 3

Company-owned and operated restaurant expenses 2,138 2,078 3 2,088 2,172 (4)

Other restaurant expenses 167 135 23

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Depreciation and amortization 111 106 5

Operating income 3,338 3,232 3

Interest expense 409 390 5

Net income $ 2,362 $ 2,253 5 %

Revenues from franchised restaurants $ 8,399 $ 7,874 7 %

Other revenues 375 334 12

Total revenues 13,616 12,799 6

Depreciation and amortization 118 121 (2)

Other operating (income) expense, net ( 139 ) ( 37 ) 29 n/m

Total operating costs and expenses 3,760 3,611 3,561 3,721 (4)

Operating income 3,595 3,357 7

Interest expense 408 406 —

Nonoperating (income) expense, net ( 6 ) ( 18 1 ) (66) 1 n/m

Income before provision for income taxes 2,936 2,861 3 3,188 2,949 8

Provision for income taxes 574 608 (6) 702 671 5

Net income $ 2,486 $ 2,278 9 %

Earnings per common share-basic $ 3.33 3.52 $ 3.15 6 3.20 10 %

Earnings per common share-diluted $ 3.32 3.51 $ 3.14 6 3.18 10 %

Six Nine Months Ended June September 30, 2026 2025 Inc/(Dec)

Revenues from franchised restaurants $ 12,887 $ 12,238 5 %

Sales by Company-owned and operated restaurants 4,842 4,590 5 7,322 7,154 2

Other revenues 565 485 16

Total revenues 20,773 19,876 5

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Franchised restaurants-occupancy expenses 1,356 1,274 6

Other restaurant expenses 329 289 14

Franchised restaurants-occupancy expenses 2,042 1,940 5

Company-owned and operated restaurant expenses 4,170 3,937 6 6,258 6,109 2

Other restaurant expenses 496 424 17

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Depreciation and amortization 222 213 4

Other 1,354 1,170 16

Total operating costs and expenses 7,324 6,918 6

Operating income 6,292 5,880 7

Interest expense 809 766 6

Net income $ 4,345 $ 4,121 5 %

Earnings per common share-basic $ 6.12 $ 5.77 6 %

Earnings per common share-diluted $ 6.10 $ 5.74 6 %

Depreciation and amortization 340 333 2

Other operating (income) expense, net ( 106 245 ) 36 ( 1 ) n/m

Total operating costs and expenses 10,885 10,639 2

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Risk factors 25 changes

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• innovate and differentiate the McDonald's experience, including by preparing and serving our food in a way that balances value and convenience to our customers with profitability;

• build upon our investments to transform and enhance the customer experience, including building one of the world's largest consumer platforms to fuel engagement;

• run great restaurants by building the easiest and most efficient restaurant operating platform which enables franchisees to run restaurants more efficiently and utilize the latest cloud-based technology to make it easier for crews to deliver exceptional customer service;

• accelerate our existing strategies, including through growth opportunities and building a modern company platform that unlocks speed and innovation throughout the organization; and

If we do not successfully evolve and execute against our business strategies, we may not be able to drive business growth and productivity.

To drive Systemwide sales, operating income, operating margin and free cash flow growth, our business strategies - including the components of our Accelerating the Arches and McDonald's > NEXT growth strategies and productivity strategy, which builds upon the foundation of our Accelerating the Arches strategy - must be effective in maintaining and strengthening customer appeal, and capturing additional market share, driving guest count growth and improving restaurant-level productivity. Whether these strategies are successful depends mainly on our System's continued ability to:

• capitalize on our global scale, iconic brand and fandom, local market presence, technology and infrastructure to build upon our historic strengths and competitive advantages; including by maximizing our marketing, committing to our core menu items, and doubling down on digital, delivery, drive thru and restaurant development;

• elevate the taste and quality of our food and beverages through Gold Standard execution and innovation of our menu to deliver food that customers seek and create experiences that drive guest count growth and capture unmet demand;

• balance delivering great taste, quality, value and convenience to our customers with profitability;

• build upon our investments to transform and enhance the customer experience, including evolving how we grow our brand through globally-scaled campaigns that are purposefully designed to be carried by fans and creators and building deeper customer relationships through our loyalty program, to drive more frequent visits;

• run great restaurants by deploying artificial intelligence ("AI")-enabled technology, including ArchIQ, to make it easier for crews to work more efficiently and deliver exceptional customer service;

• achieve excellence in execution, including by equipping restaurant teams across the System, including those of our franchisees, with the training, tools and operating standards needed to deliver excellent food and hospitality, including through our Make It Golden Systemwide commitment to elevate the customer experience;

• accelerate our existing strategies, including through growth opportunities and building Company data, analytics and AI capabilities that unlock greater speed, innovation and efficiency and support ongoing efforts to reduce costs; and

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The various elements of our McDonald's > NEXT strategy are expected to be implemented over a multi-year period, with timing and sequencing to vary across our markets based on, among other factors, customer needs, restaurant and technology readiness, local economic conditions and franchisee capacity. As a result, the anticipated financial, efficiency and other benefits of these initiatives may be realized later than expected or not at all. If we are delayed or unsuccessful in evolving or executing against our strategies, including in the transition from Accelerating the Arches to McDonald's > NEXT , if the execution of our strategies proves to be more difficult, costly or time consuming than expected, or if our strategies do not yield the desired results, our business, financial condition and results of operations may suffer.

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If we do not anticipate and address industry trends and evolving consumer preferences and effectively execute our pricing, promotional, and marketing and menu plans, our business could suffer.

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Consumer acceptance of our menu offerings is subject to change for a variety of reasons, and some changes can occur rapidly. For example, health, environmental and other scientific studies and practices, (such as changes to dietary guidelines or use of weight-loss medications), continuously evolve and may have contradictory implications, drive popular opinion and regulation and alter consumer behavior in ways that affect the IEO segment or perceptions of our brand, generally or relative to available alternatives. Shifts in consumer behavior and dietary guidelines or preferences, including those resulting from increased use of weight-loss medications such as GLP-1s could affect consumption patterns and reduce demand for certain menu offerings. Our McDonald's > NEXT strategy includes introducing more flexible portion sizes and expanding high-protein and other menu options to account for changes to dietary guidelines and use of weight loss medications. These changes may not achieve customer acceptance, could increase complexity in our restaurant operations and supply chain and may not offset any reduction in guest counts or average check resulting from changes in consumer eating habits. In addition, the extent and longevity of the use of weight-loss medications, as well as their longer-term effects on consumer behavior and consumption patterns, remain uncertain and could vary by market.

Our ability to build upon our strengths and advantages also depends on the impact of pricing, promotional, and marketing and menu plans across the System, and the ability to adjust these plans to respond quickly and effectively to evolving customer behavior and preferences, as well as shifting economic and competitive conditions. Existing or future pricing strategies and marketing plans, as well as the value proposition they represent, are expected to continue to be important components of our business strategy. However, they may not be successful, or may not be as successful as the efforts of our competitors, which could negatively impact sales, guest counts and market share.

Additionally, we operate in a complex and costly advertising environment. Our marketing and advertising programs may not be successful in reaching consumers in the way we intend. Our success depends in part on whether the allocation of our advertising and marketing resources across different channels, including digital, allows us to reach consumers effectively, efficiently and in ways that are personal and meaningful to them. If our advertising and marketing programs are not successful, or are not as successful as those of our competitors, our sales, guest counts and market share could decrease.

Our investments to transform and enhance the customer experience, including through technology, training and hospitality initiatives, may not generate the expected results.

Our long-term business objectives depend on the successful Systemwide execution of our strategies. We continue to build upon our investments in restaurant development, technology, restaurant crew training, digital engagement and delivery in order to transform and enhance the customer experience. As part of these investments, we are continuing to place emphasis on improving our service model and strengthening relationships with customers, in part through digital channels and loyalty initiatives, mobile ordering and payment systems, and enhancing our drive thru technologies, which efforts may not generate expected results. We also continue to expand and refine our delivery initiatives, including through integrating delivery and mobile ordering. Utilizing a third-party delivery service may not have the same level of profitability as a non-delivery transaction and may introduce additional food quality, food safety and customer satisfaction risks. Our McDonald's > NEXT strategy and Make It Golden hospitality elevation commitment also include investments in Systemwide training and generative AI-enabled technologies intended to improve the customer experience through great food and great hospitality via restaurant execution and efficiency, the success of which depends on franchisee alignment, workforce capabilities and effective adoption and deployment across our markets. If these customer experience initiatives are not successfully executed, or if we do not fully realize the intended benefits of these significant investments, our business results may suffer.

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We cannot ensure that franchisees and other third parties who hold licenses to our intellectual property will not take actions that adversely affect the value of our intellectual property. Moreover, rapid technological developments, including artificial intelligence AI-driven tools, may increase our exposure to existing intellectual property risks, including theft or unlicensed use, intellectual property disputes and enforcement challenges.

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We depend on the effectiveness of our supply chain management to assure a reliable and sufficient supply of quality products, equipment and other materials on favorable terms. Although many of these items are sourced from a wide variety of suppliers in countries around the world, certain items have limited suppliers, which increases our reliance on those suppliers. Supply chain interruptions and related price increases have in the past and may in the future adversely affect us as well as our suppliers and franchisees, whose performance may have a significant impact on our results. Such interruptions and price increases could be caused by shortages, inflationary pressures, tariffs, unexpected increases in demand, transportation-related issues, labor-related issues, technology-related issues, weather-related events, natural disasters, geopolitical tensions, acts of war, terrorism or other hostilities, or other factors beyond our control or that of our suppliers or franchisees. Interruptions in our System's supply chain or ineffective contingency planning can increase our costs, impact ingredient quality, delay new restaurant openings, and/or limit the quality or availability of products, equipment and other materials that are critical to our System's operations or to restaurant development.

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Our success as a heavily franchised business relies to a large degree on the financial success and cooperation of our franchisees, including our developmental licensees and affiliates. Our restaurant margins arise from two sources: fees from franchised restaurants (e.g., rent and royalties based on a percentage of sales) and, to a lesser degree, sales from Company-owned and operated restaurants. Our franchisees manage their businesses independently and therefore are responsible for the day-to-day operation of their restaurants. The revenues we realize from franchised restaurants are largely dependent on the ability of our franchisees to grow their sales. Business risks affecting our operations also affect our franchisees. If franchisee sales trends worsen, or if any of such business risks materialize or intensify, our financial results could be negatively affected, which may be material.

Our success also relies on the willingness and ability of our franchisees and affiliates to implement major initiatives, such as the restaurant modernization, operational, technological and training initiatives contemplated by our McDonald's > NEXT strategy, which may include financial investment, and to remain aligned with us on operating, value/promotional and capital-intensive reinvestment plans. The ability of franchisees to contribute to the achievement of our plans is dependent in large part on the availability to them of funding at reasonable interest rates and may be negatively impacted by the financial markets in general, by their or our creditworthiness or by banks' lending practices. If our franchisees are unwilling or unable to invest in major initiatives or are unable to obtain financing at commercially reasonable rates, or at all, our future growth and results of operations could be adversely affected.

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Security incidents and breaches have occurred from time to time and may occur in the future involving our systems, the systems of the parties with whom we communicate or collaborate (including franchisees) or the systems of third-party providers. Additionally, cybersecurity threats continue to become more sophisticated, including AI-enabled attacks and deepfake technology. Incidents may include unauthorized access, phishing attacks, account takeovers, denial of service, computer viruses, deepfakes and other malicious uses of artificial intelligence, AI, introduction of malware or ransomware and other disruptive problems caused by hackers or unintentional events. Certain of these technology systems contain personal, confidential, financial and other information of our customers, employees, franchisees and their employees, suppliers and other third parties, as well as financial, proprietary and other confidential information related to our business. Despite response procedures and measures in place in the event an incident occurs, an event could result in disruptions, shutdowns, or a security breach including the theft or unauthorized disclosure of certain of the above-described information. The actual or alleged occurrence of any of these types of incidents could result in mitigation costs, reputational damage, adverse publicity, loss of consumer confidence, reduced sales and profits, complications in executing our growth initiatives and regulatory and legal risk, including administrative fines, criminal or civil penalties or civil liabilities.

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Controls and procedures 2 changes

An evaluation was conducted under the supervision and with the participation of the Company's management, including the CEO and CFO, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of June September 30, 2026. Based on that evaluation, the CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of such date to provide reasonable assurances that information required to be disclosed by the Company in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and is accumulated and communicated to the Company's management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

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Except for these changes, the Company's management, including the CEO and CFO, confirm there has been no change in the Company's internal control over financial reporting during the fiscal quarter ended June September 30, 2026 that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

Unregistered sales of stock 10 changes

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The following table presents information related to repurchases of common stock the Company made during the quarter ended June September 30, 2026:

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April 1-30, 2026 838,950 $ 304.62 838,950 $ 12,334,592,801

May 1-31, 2026 1,299,967 283.71 1,299,967 11,965,784,271

June 1-30, 2026 835,000 280.21 835,000 11,731,806,872

Total 2,973,917 $ 288.62 2,973,917

July 1-31, 2026 853,497 $ 273.79 853,497 $ 11,498,131,539

August 1-31, 2026 619,356 271.51 619,356 11,329,969,897

September 1-30, 2026 465,344 251.45 465,344 11,212,958,001

Total 1,938,197 $ 267.70 1,938,197

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(1) As disclosed in the Company's Annual Report on November 21, Form 10-K for the year ended December 31, 2024, the Company's Board of Directors approved a share repurchase program on November 21, 2024, effective January 1, 2025 with no specified expiration date, that authorized the purchase of up to $15.0 billion of the Company's outstanding common stock.

Other information 9 changes

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No officer In accordance with the disclosure requirement set forth in Item 408(a) of Regulation S-K, the following table discloses the officers (as defined in Rule 16a-1(f) under the Exchange Act) or director and directors who adopted modified, or terminated a contract, instruction or written plan for the purchase or sale of the Company's securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or a non-Rule 10b5-1 trading arrangement during the quarter ended June September 30, 2026. These trading plans were adopted during an open trading window.

Name / Title Type of Plan Adoption Date End Date Aggregate Number of Securities to be Sold Plan Description

Jonathan Banner / EVP – Global Chief Impact Officer Rule 10b5-1 trading plan August 10, 2026 November 30, 2026 1,500 Sale of shares

Morgan Flatley / EVP – Global Chief Marketing Officer Rule 10b5-1 trading plan August 18, 2026 November 16, 2027 12,651 [1]

Desiree Ralls-Morrison / EVP – Global Chief Legal Officer Rule 10b5-1 trading plan August 28, 2026 December 31, 2027 25,416 [2]

Sale of shares, and exercise and sale of stock options

[1] Represents 4,291 vested shares and a maximum of 8,360 shares that are eligible to vest pursuant to Ms. Flatley's 2024 performance-based restricted stock unit ("PRSU") award. The actual number of shares that will vest under Ms. Flatley's 2024 PRSU award will depend upon the Company's performance against certain pre-established targets and will determine the number of shares that may ultimately be sold pursuant to the trading plan.

[2] Represents 16,892 vested shares and a maximum of 8,524 shares that are eligible to vest pursuant to Ms. Ralls-Morrison's 2024 PRSU award. The actual number of shares that will vest under Ms. Ralls-Morrison's 2024 PRSU award will depend upon the Company's performance against certain pre-established targets and will determine the number of shares that may ultimately be sold pursuant to the trading plan.

Other than as disclosed above, no officer or director adopted, modified, or terminated a contract, instruction or written plan for the purchase or sale of the Company's securities intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or a non-Rule 10b5-1 trading arrangement.

Exhibits 1 change

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Date: August 7, November 6, 2026 Ian F. Borden

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